The good news for bulls were the two higher volume accumulation days on tests of support. Combined with a sequence of bullish candlesticks on oversold stochastics. The concern is the increase in bearish trend strength after a period of cooling in the latter part of 2008.
Although the index appears to be attempting a double bottom, confirmation of this won't come until 3,728 is breached. Additional resistance at 4,058 (the former head-and-shoulder neckline) and the 200-day MA will keep the lid on any secular change from the bear trend.
But initial suggestions favour a short term play to double bottom resistance with a stop on a break of November lows.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website